I am hoping to let a property and my agent has included lpg gas in the
rental price. We have installed a meter but because of price rises I'm
not convinced this is a good way to go. The only other way is to charge
prospective tenants monthly but what if they don't pay?

Also - if they include the gas price in the rental that means we are paying the agent commission + VAT on the gas usage.

ian101061

06-10-2011, 16:03 PM

I once many years ago included the gas in the rental price and the tenants duly left the heating on for 24hrs a day at the highest possible setting. Needless to say I did not do it again.

johnjw

06-10-2011, 17:01 PM

I'm not sure that I fully understand your problem but I do agree with Ian - it would NOT be a good idea to include a "reasonable" amount for gas in the rent and hope that your tenant is reasonable.
I presume that you have a large tank which is topped up from time to time. Since you have a meter, could you not suggest a unit price for the gas and agree with your tenant to settle monthly on the basis of the meter reading. You could even copy the utility companies and accept your tenants readings - with the proviso that at the end of the tenancy you will jointly take the final reading.
The chance of non-payment of the gas bill is always there, but you should have a deposit to protect you.

amack5

06-10-2011, 18:24 PM

My problem was exactly as Ian said - that they would have the heating on 24/7 and leave
without paying. I'm surprised that the Agent suggested this, I think he thought we'd get a
tenant quicker.

jta

06-10-2011, 19:14 PM

If it's a tank then rent the place to them with an empty tank, or at least a low amount, then make it their responsibility to order and pay for the amount of gas they use.

It's quite common here in Spain and that's the way the Spanish do it.

amack5

06-10-2011, 19:27 PM

Problem is it is a shared tank

Snorkerz

06-10-2011, 19:32 PM

Option 2 - charge a fuel deposit (as above) but charge per month/quarter whatever for the gas they use. If they don't pay within X days/weeks you cut off the supply. At the end of the tenancy you use the deposit to clear any outstanding amount.

You'd need to make sure the AST allows you to use the deposit for fuel (standard ones probably say damage / missing rent) and you'd need to make any disconnection terms VERY clear in the agreement to avoid potential harassment / illegal eviction claims.

amack5

06-10-2011, 19:36 PM

sorry, I'm new to this - what is AST?

Snorkerz

06-10-2011, 19:47 PM

The tenancy agreement - "Assured Shorthold Tenancy"

amack5

06-10-2011, 19:49 PM

Thanks, I just had a senior moment there

mariner

07-10-2011, 01:21 AM

You say you installed a meter, pres for LPG supplied solely to your property, tanks usually supplied with own meter. Either T supplies you with receipted paid invoices for lpg used & you bill them for shortfall at end of T at prevailing price, based on meter readings.